1. Billing Model Overview
Shopflo has transitioned to a prepaid billing model to ensure better service continuity. This model combines upfront payment for guaranteed service with usage-based billing for actual consumption.
Key Changes
Prepaid Component: Upfront Minimum Charge - paid in advance.
Postpaid Component: Actual usage billed after consumption.
Credit System: Upfront Minimum Charge that converts to credits for the next invoice.
2. Prepaid Billing Structure
Phase 1: If Go Live Date is from 1st to the 20th of the month.
Process:
Collect the Upfront Minimum Charge - which act as credits for your Shopflo Account. (refer IMG 1.1)
These are not for any billing cycle, these are only credits which have been provided to you and will be redeemed in the upcoming invoice.
Next bill calculation: Next cycle Minimum Charge + Usage - Credits provided to you (refer img 1.2)
Example (Assuming you went live on the 19th Nov with a pricing of 3k/1% whichever is higher)
First Invoice - (Credits added to your account once paid)(Raised on the date you went live or a little earlier)
IMG 1.1
Second Invoice - Based on the usage of 19th Nov - 30th Nov)(Raised on the 2nd of Dec)
IMG 1.2
Phase 2: If Go Live Date 21st onwards.
Process:
Collect the Upfront Minimum Charge - which act as credits for your Shopflo Account (refer img 2.1)
These are not for any billing cycle,these are only credits which have been provided to you and will be redeemed in the upcoming invoice (refer img 2.1)
Skip current cycle billing T1 . Receive a bill in the next billing cycle T2 (refer img 2.2)
Example (Assuming you went live on the 29th of Nov with a pricing of 3k/1% whichever is higher)
First Invoice - (Credits added to your account once paid)(Raised on the date you went live or a little earlier)
IMG 2.1
Second Invoice - (Based on the usage of 1st Dec- 31st Dec)(Raised on the 2nd of Jan)
IMG 2.2
Phase 3: Last Invoice(Please note that this only happens when notice is given before the final invoice is generated)
IMG 3.1
PLEASE NOTE THAT THE INVOICE IS TO BE CLEARED IN THE SAME MONTH IT WAS RAISED IN.
IF NOT,THE SUBSEQUENT BILL WILL NOT HAVE CREDITS REMOVED FROM THEM CAUSING IT TO BE OF A HIGHER AMOUNT.
PLEASE CLEAR THE INVOICE IN THE SAME MONTH IT WAS RAISED IN.
3. Line item Explanation
Checkout Charges Online/COD - The comission charged on your sales.
Minimum Charge - Our pricing will always contain a price floor(example 3k/1% whicever is higher). If your checkout charges total to Rs. 2k,the remaining 1k (which is required to bring the total of the checkout charges to 3k) is under the line item Minimum Charge.
Upfront Minimum Charge - What you’re charged upfront for the month.
Credits - The upfront minimum charge of last month that has converted into credits.
Please note that Checkout Charges + Minimum Charge - Credits= 0 (Unless the invoice is prorated or your sales exceed a certain threshold)
4. Invoice Issuance
Frequency: Monthly, automated billing system
Date: 2nd of each month (or next business day if holiday)
Content: Subscription fees, usage charges, applicable taxes
Delivery: Email notification with detailed breakdown
5. Payment Structure
Due Date: 12th of each month 10 days from invoice date)
Grace Period: 3 additional days (total 13 days)
Invoice Amount: Inclusive of GST 18% and TDS 2% under 194J(A).
Payment Method: As agreed via email with your sales representative
Account Verification
Please verify your organization details in the Shopflo dashboard under "Organization Details" to ensure accurate billing.
6. Late Payment Policy & Penalties
Late Fee Structure
Late Fee: 5% per month of outstanding amount after due date
Calculation: Applied monthly on overdue invoices
Compounding: Late fees apply to the principal amount each month until paid.
Service Restrictions Timeline
Overdue Status | Action Taken | Impact |
1 Invoice Overdue | Dashboard access revoked upon next invoice generation | Cannot access analytics, reports, settings |
2 Invoices Overdue | Checkout services are suspended immediately | Payment processing stopped completely |
7. Refunds and Cancellations
Cancellation Policy
Initial Period: Cancellation allowed within 7 days of first billing with refund eligibility
Ongoing Service: 30 days written notice required BEFORE new invoice generation
Notice Method: Written notice to support@shopflo.com, cc'ing billing@shopflo.com
Effective Date: End of current billing cycle (only if notice given before next invoice)
Refund Policy
First-Time Users Only: Refunds available within 7 days of first invoice
No Ongoing Refunds: No refunds for subsequent billing cycles
Unused Credits: No refunds for unused credits after 7-day initial period
Processing Time: 7-14 business days for eligible refunds
Administrative Charges: ₹500 or 5% (whichever is lower) for processing
Important Notes
Credits are non-refundable after the initial 7-day period
Cancellation notice must be received before the next billing cycle begins
No exceptions to the refund policy will be considered
8. Subscription and Pricing
Plan Structure
Feature Access: Based on your chosen subscription tier
Pricing: As agreed via email with your designated sales representative
Changes: 30-day advance notice for any pricing modifications
Upgrades/Downgrades: Effective from next billing cycle
9. Contact Information
Billing Inquiries
Email: billing@shopflo.com
Response Time: 24-48 hours for billing queries
General Support
Email: support@shopflo.com
Response Time: 5-10 mins for urgent issues
Sales and Account Management
Contact: Your designated sales representative
Escalation: sales@shopflo.com
10. Legal and Compliance
Terms Acceptance
By continuing to use Shopflo services after the effective date of this policy, you acknowledge and agree to these updated terms and conditions.
Governing Law
This policy is governed by Indian law and subject to the jurisdiction of courts in Bangalore (Bengaluru).
Data Protection
All billing and payment data is processed in accordance with applicable data protection laws and Shopflo's Privacy Policy.
Important Note
This updated billing model is designed to provide better service reliability while ensuring fair usage-based pricing. We appreciate your cooperation during this transition.
For any questions or clarifications regarding this policy, please contact our billing team at billing@shopflo.com.